Are we Specialists?

Most of us run at the very word Finance. I was also like that. I made a lot of mistakes in investments, paid hefty interests, due dates missed, you name it and I have gone through it.

Most of us have faced all these problems, or are still facing them.

What is the reason?

Lack of Finance Education. 

It took some 14 years for me to understand what went wrong.
If you are smart you will learn sooner. I am not asking you to get an MBA in Finance or pour hours over Finance subjects.

But is it not necessary to understand the basics?

• What is my salary?
• How much its taxed?
• Where are all the deductions going?
• Is my family protected?
• Do my earnings have the capacity to meet all my goals? (Forget desires for now)
• Do I have a retirement plan?
• Will I be able to lead the same life style that I am leading now after 25 years?

We assume that we are not earning enough and we keep running to earn more money. But the mistake we all do is not investing in the right instrument in the right time so that it meets our goals.

Even if we delay our finance planning and investing by one month, the effect is too much on our returns. Why?

Because there is something called 'Time value of money"

Money cannot double in a day. It needs time to compound. That is earn interest on interest. And this takes a long time.

We will cover more in subsequent blogs, as there is no end to Financial education.